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24 Cards in this Set
- Front
- Back
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Production View of the Firm |
Stakeholders are only ind's or groups that supply resources or bought products |
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Managerial View of the Firm |
Firms are also responsible towards other major groups in order to be successful, management cares about who they believe has a stake in the org |
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Stakeholder view of the firm |
Stakeholders are anyone who believes that they have a stake in the organization, not up to management |
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Primary Social Stakeholders |
Direct stake in org; most influence; has to do with ppl Shareholders and investors Customers Employee's and managers local communities Suppliers and business partners |
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Secondary Social Stakeholders |
Extremely influential but more indirect stake; has to do with ppl Government and regulators Civic institutions Social pressure/activist groups Media and academic commentators Trade bodies Competitors |
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Primary Nonsocial Stakeholders |
Not present day people related Natural environment Future generations Nonhuman species |
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Secondary Nonsocial Stakeholders |
Not present day people related Environmental interest group Animal welfare orgs
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Legitimacy |
Stakeholder attribute How close are they to the business the perceived validity of stakeholders claim to stake; high legit ex's owners, employees and customers b/c they have explicit, formal, and direct relationship with the company |
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Power |
The ability to produce effect |
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Urgency |
degree to which stakeholder claim on business calls for immediate attention or response |
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Strategic Approach |
Stakeholders are viewed as factors to be taken into consideration and managed while the firm pursues profits for shareholders Stakeholders are instruments |
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Multifiduciary Approach |
Management has a fiduciary responsibility toward stakeholders just as it does shareholders; shareholders and stakeholders are on the same level |
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Stakeholder Synthesis Approach |
Business does have moral responsibility to stakeholder but they are not part of fiduciary responsibility
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Important functions of stakeholder management |
1. Describe 2. Analyze 3. Understand 4. Manage |
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Type One: Supportive Stakeholder |
High potential for cooperation and low potential for threat Strategy: Involvment |
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Type Two: Marginal Stakeholder |
Low on potential for cooperation and threat; Strategy: monitor |
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Type Three: Nonsupportive Stakeholder |
High potential for threat low potential for cooperation Strategy: defend |
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Type 4: The Mixed-Blessing Stakeholder |
high on both potential for threat and potential for cooperation Ex: clients, employees, or customers who are in short supply Strategy: Collaborate |
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Stakeholder thinking |
undergirds stakeholder management and is the process of always reasoning in stakeholder terms throughout the management process |
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Three levels of Stakeholder Management Capability |
An org's integration of stakeholder thinking into its processes Level 1. Rational Level Level 2. Process Level Level 3. Transactional Level |
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Rational Level |
first level of stakeholder management capability comp identifies their stakeholders and what the stakes are; descriptive and analytical b/c the legit. of stakes, stakeholder's power, and urgency are identified; element of familiarization and comprehensiveness |
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Process Level |
Second Level of stakeholder Management Capability Develop and implement processes by which the firm may scan the envir. and gather info about stakeholders for decision making purposes; portfolio analysis, strategic review process, and envir scanning process planning integrativeness |
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Transactional Level |
Third level of stakeholder management capability highest goal for stakeholder management; managers actually transact with stakeholders; transformation of the business and society relationship occurs at this level Communication level |
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Stakeholder symbiosis |
all stakeholders depend on each other for their success and financial well-being |
